"Annual Economic Effect of 7 Trillion Won from Carbon Neutrality and Digital Transformation in Key Industries"

'Industrial Technology Future Forum' Held for the First Time... Presenting 22 Strategic Technologies and 10 Promising Industries

[Sejong=Asia Economy Reporter Kwon Haeyoung] An analysis has emerged suggesting that successfully achieving digital transformation and carbon neutrality in key industries such as automobiles and steel could generate economic benefits exceeding 7 trillion won annually.

Professor Park Jung-gu of Seoul National University of Science and Technology presented research findings titled "Innovation Strategies for Improving the Resilience of Key Industries in Crisis" at the '1st Industrial Technology Future Forum' held on the 22nd at the Glad Hotel in Yeouido, Seoul.

The Industrial Technology Future Forum is an event jointly organized by the Ministry of Trade, Industry and Energy and the office of Lee Hak-young, Chairman of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee, to deeply discuss the impact and response strategies by industry sector amid rapidly changing industrial trends. The first forum was held under the theme "Digital and Carbon Neutrality, the Path to the Future of K-Industry."

Based on an in-depth panel analysis of over 3,300 companies, Professor Park proposed 22 strategic technologies to improve the resilience of five major key industries significantly affected by recent industrial environmental changes such as digital transformation and carbon neutrality. The five key industries are automobiles and auto parts, machinery, petroleum and chemicals, textiles, and steel. Industry-specific strategic technologies include next-generation battery solid electrolyte technology (automobiles and auto parts), biodegradable fiber material development technology (textiles), and hydrogen reduction steelmaking process (steel).

Professor Park also derived 65 policy tasks and presented growth targets and expected effects by industry achievable through these tasks. For example, in the automobile and auto parts sector, the goal is to achieve 4th place in global production volume and 3rd place in technological competitiveness through the development of next-generation battery solid electrolyte technology. If the goals are met, the annual average growth rate of real value-added over the next five years is expected to be 3.6%, which is 1.4 percentage points higher than the baseline forecast.

Looking at all five key industries, if all 22 strategic technologies are developed and 65 policy tasks are successfully implemented, the expected effects over the next five years include an annual production inducement effect of 59 trillion won, a value-added inducement effect of 13 trillion won, and employment creation of approximately 9,400 jobs.

Researcher Jeong Jong-seok of the Korea Institute for Industrial Economics and Trade announced the "Top 10 Promising New Industries Leading the Global Economy," derived from an analysis of approximately 2 million patent big data. The top 10 promising new industries are autonomous driving packaging, MaaS (Mobility as a Service), hydrogen fuel cell mobility, ultra-clean liquefied natural gas (LNG) ships, mobile healthcare, personalized precision medicine, artificial intelligence (AI) home services, human-coexistence logistics robots, clean hydrogen production, and AI semiconductor industry.

The government is investing approximately 549.5 billion won in research and development (R&D) budgets for these 10 promising new industries, which is 10.8% more than the previous year, to foster them intensively.

Seong Yun-mo, Minister of Trade, Industry and Energy, said, "Amid fundamental changes in the industrial paradigm, it is time to enhance our industrial technology capabilities and strengthen strategic investments further," adding, "I hope the Industrial Technology Future Forum will become a compass and helmsman opening a hopeful future for 'K-Industry.'"